Federal Judge Rules Brigit's Cash Advances Are Payday Loans

A federal judge ruled on April 10, 2026 that cash-advance app Brigit's "Instant Cash" product is essentially a payday loan, allowing a lawsuit by active-duty service members to move forward.

Key takeaways

• U.S. District Judge Lewis J. Liman (Southern District of New York) called Instant Cash "substantially similar" to a payday loan and denied Brigit's motion to dismiss.
• The decision treats the product as credit under the Truth in Lending Act and the Military Lending Act, which caps the APR for service members at 36%.
• The court found that fees and "tips" can function as disguised finance charges, pushing the effective APR into triple digits.
• By the National Consumer Law Center's count, 14 of 14 courts to weigh the question have found these apps make loans.

What the court found

In *Freeman v. Bridge It*, service members alleged Brigit's advances exceeded the 36% cap once fees were counted. Writing for the court, Judge Liman said: "In effect, the consumer agrees to the payment of sums in the future 'for the privilege of obtaining cash…today.'" The complaint cited one New York customer who took more than 400 advances and paid about $1,400 in fees over two years. Brigit has signaled it will take the fight to the Second Circuit Court of Appeals.

How it fits the bigger picture

This was a ruling on a motion to dismiss, not a final judgment, but it adds to a consistent line of decisions on earned wage access. The fintech industry argues these products are not loans because repayment is tied to wages already earned — a view the Consumer Financial Protection Bureau partly endorsed for certain employer-based programs in a December 2025 advisory opinion. Courts weighing direct-to-consumer apps have so far reached the opposite conclusion.

What it means for workers using cash-advance apps

The legal status of cash-advance apps remains unsettled and is being contested in both courts and legislatures. For active-duty service members, the ruling signals that the 36% Military Lending Act cap may apply to some of these products.